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News Release

Glasgow

Number of Glasgow office deals rise by third in 2014

JLL predicts strong year ahead for city


GLASGOW, 21 JANUARY 2015 - The number of office deals in Glasgow city centre rose by over 30 per cent in 2014.

There were 129 transactions in total, compared with 99 in 2013. Approximately 643,442 sq. ft. was taken throughout the whole year, only a small decrease on 2013's 677, 564 sq. ft.

While the space taken was down slightly, the value of the space increased with a headline city centre rent of £29 per sq. ft.

Across Greater Glasgow and the West of Scotland, there were 224 deals totalling 1,002,488 sq. ft.

The last quarter of the year saw 41 deals in the city centre, for a total of 181,628 sq. ft. 

Alistair Reid, director for JLL in Glasgow, said: "The Glasgow office market performed strongly throughout 2014 with a number of high-profile transactions. There was a healthy end to the year, fuelled by strong occupier confidence after the referendum.

"Supply has again constricted and has dropped below the 10 per cent vacancy rate. We expect this figure to tighten in Q1 of 2015 until the new-build Grade A office developments come to market in the middle of the year."

JLL's Office team was involved in five of the top 10 deals in Glasgow in 2014, accounting for over 50 per cent of occupier take-up.

The largest deal in 2014 saw Network Rail take 48,570 sq. ft. at 151-155 St Vincent Street. Cigna's rental of 33,368 sq. ft. at the Grosvenor building was the second biggest deal of the year and the biggest in Q4.

Other major transactions saw Global Radio pre-let 13,603 sq. ft. at 1 West Regent Street and Grant Thornton pre-let 14,973 sq. ft. at 110 Queen Street.

Predictions for 2015

Looking ahead to 2015, JLL predicts the following significant trends over the coming year that will shape the office occupier market in Glasgow:

  1. We will continue to see pre-let activity taking place at 1 West Regent Street, 110 Queen Street and St Vincent Plaza throughout the first half of 2015 as new-build Grade A stock completes mid-Q2.
  2. Headline rental figures look set to increase with incentives also looking to tighten as more powers are given to Landlords.  This will become increasingly evident as the three new-build Grade A offices start to decrease in availability.
  3. There is a strong probability that we will see movement on the next office development cycle as Grade A pre-let activity continues. 
  4. Letting activity will continue to focus on the city centre with an emphasis on the Queen Street and Glasgow Central train stations linking the city to Edinburgh and the South.
  5. We believe there will be an uplift in the number of TMT companies expanding and moving into the city centre as this is a trending theme.  ​